Moody's lowers Southcross Energy

Moody's Investors Service said it downgraded Southcross Energy Partners, LP's corporate family rating to Caa3 from Caa2, probability of default rating to Ca-PD from Caa2-PD and senior secured term loan rating to Caa3 (LGD 3) from Caa2 (LGD 3).

The SGL-4 speculative grade liquidity rating also was affirmed, reflecting weak liquidity.

The outlook remains negative.

The downgrades reflect the partnership's high restructuring risk stemming from a likely covenant violation at the end of March 2019 and the upcoming revolver maturity in August 2019, Moody's said.

Southcross has an untenable capital structure, the agency said.

Without amending and extending the revolver, the company may not survive as a going concern, Moody's added.

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